2. Dabba Trading causes huge losses: NCDEX What is dabba trading? It is the process used by broker to route their client’s trades (buys/sells orders) out side the stock exchange. The broker matches and executes order on his own. This saves transaction costs for both the broker and client.
3. Dabba trading is done in all trading agri commodities, gold and even metals like steel. Dabba trading on gold and steel was high in Punjab & Delhi, where in agri commodity it is high in Rajasthan. This trade benefit the brokers, who are looking for an opportunity to offload some of their future contracts, bypass the exchanges as it helps them to save transaction charges & margins payable to the comex.
4. Jairam dashes Vedanta’s hopes of mining bauxite Vedanta resources plans for India appear to under siege with the environment ministry rejecting its proposal to mine bauxite in nilyamgiri Hills of Orissa The refinery has allegedly violated the environment Protection act by increasing capacity to 6 million tones per year from 1 mtpa without getting the requisite clearance.
5. Vedanta has plan to use bauxite from niyamgiri mines to operationalise the lanjigarh refinery. The mine would help the company to reduce raw material costs. Now, the company will seek alternative bauxite mine to feed its alumina refinery after the central government denied permission to mine bauxite in Niyamgiri.
6. PSB to file draft prospectus soon Punjab & Sind bank is likely to file a draft with sebi by the end of august to raise about Rs. 600 crore from its initial public offer(IPO). The funds proceeds would be used for business expansion. At , the same time the bank planned to increase its branch network from 918 to 1000 by the end of march 2011.
7. Currently the government own 100% stake in the bank & is the only unlisted bank among 19 nationalized bank in the country. The Government would offload about 18% stake and the bank expected to raiseRs.500 -600 crore from the public issue.
8. Direct Taxes Code Bill gets Cabinet nod Union Cabinet has approved a new direct tax code (DTC) Bill, which will provide relief to individual tax payer and simplify the direct tax regime from April 2011. Tax limit goes up to Rs. 2 lakh. More relief for women and senior citizens.
9. Existing basic slabs Likely basic slabs Income Tax Income Tax Rs. 1.6 lakh to 5 lakh 10% Rs. 2 lakh to 5 lakh 10% Rs. 5 lakh to 8 lakh 20% Rs. 5 lakh to 10 lakh 20% Above 8 lakh 30% Above Rs. 10 lakh 30% Current exemption limit for women is Exemption limit for women & senior Rs. 1.9 lakh & for senior citizens it is citizens likely to be further increase. Rs. 2.4 lakh .
